EU confirms launching antitrust probe against Deutsche Bahn

Mar 31, 2011, 10:48 GMT

Brussels - German rail operator Deutsche Bahn is under investigation for a suspected breach of European Union antitrust law, the European Commission said on Thursday.

'The commission has reason to believe that Deutsche Bahn AG may have breached EU antitrust rules that prohibit the abuse of a dominant market position,' the EU's executive said in a statement, confirming German press reports.

The commission said it suspected Deutsche Bahn Energie, the company's subsidiary supplying electricity to the German railway network, of 'giving preferential treatment to the group's rail freight arm.'

As a result, officials from the EU commission and Germany's antitrust authority carried out 'unannounced inspections at the premises of Deutsche Bahn AG and some of its subsidiaries' on Tuesday, the commission said.

News of the probe had been first reported by Der Spiegel, a German news magazine.

The commission stressed that its inspections marked only the beginning of its investigations, and that there was no proof Deutsche Bahn had actually committed any violation of EU law.

Companies found guilty of breaching the bloc's strict antitrust laws may be fined up to 10 per cent of their total annual turnover - a potentially crippling sanction.

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